Qantas full-year profits jump 46%
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The Qantas Group has announced its results for the full-year 2010-11, with pre-tax profits jumping 46% to AU$552 million (US$578 million), compared to AU$377 in the previous year. The airline’s total revenue increased 8% to AU$14.89 billion, as expenses increased 7% to AU$14.25 billion.
The group’s mainline carrier, Qantas Airways experienced a significant 240% surge in pre-tax profits to AU$228 million, with domestic gains more than offsetting its international losses. Low-cost unit Jetstar saw a 29% rise in profits to AU$169 million, while Qantas Frequent Flyer profits rose 4% to AU$342 million. The group’s cargo unit, Qantas Freight experienced a significant 48% jump in profits to AU$62 million.
“This result reflects the strength of the Qantas Group’s portfolio and is our best performance since the global financial crisis” said Qantas Chief Executive Officer, Alan Joyce. “We achieved the result while overcoming significant external and operational factors, including a series of natural disasters, a 28 percent increase in average fuel prices and an underperforming international business.
“We are pleased to report improved earnings for Qantas Domestic and Qantas Freight and record results for Jetstar and Qantas Frequent Flyer. Given the aviation sector’s inherent volatility, the flexibility to generate revenue from different parts of the business and different market sectors is a major strength for the group.”
Qantas’ international operations reported a loss of over AU$200 million in full-year 2010-11, which Joyce called an “unacceptable return”. The group last week announced plans to restructure its international operations, with the loss of 1,000 jobs.
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